11 sources·Business

Hooters Files for Chapter 11 Bankruptcy Amid Financial Struggles

Hooters seeks Chapter 11 protection from creditors as it faces $300 million in debt, while planning to restructure and retain its restaurant presence.

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Its business strategy has faced challenges over the years, including lawsuits over its hiring of only “Hooters Girls” to serve customers.
Hooters restaurant chain, known for skimpy wait-staff outfits, files for bankruptcy protection
Boston Herald·19d
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Hooters, like other casual dining restaurants, has struggled in recent years due to inflation, the high costs of labor and food, and declining spending by cash-strapped American consumers.
Hooters files for bankruptcy amid $376M debt as chain’s founders seek to take control, bring restaurant ‘back to its roots’
New York Post·19d
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Hooters had sponsored the No 9 Nascar car driven by Chase Elliott since 2017.
Hooters restaurant chain files for bankruptcy protection
The Guardian·19d
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Hooters has filed for bankruptcy protection.
Hooters files for bankruptcy protection
Boston Globe·19d
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Hooters has filed for bankruptcy protection.
Hooters Files for Bankruptcy Protection
TIME Magazine·19d
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Trouble had been brewing for a while.
Hooters restaurant chain files for bankruptcy protection
ABC News·19d
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Trouble had been brewing for a while.
Hooters restaurant chain, known for skimpy wait-staff outfits, files for bankruptcy protection
Associated Press·19d
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This bankruptcy filing represents a significant shift in Hooters' business model, transitioning from a hybrid franchise and company-owned operation to solely a franchising model.
Hooters files for bankruptcy with plan to bring back original founders
Newsweek·19d
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Like many other casual dining chains, Hooters has struggled in recent years as it faces rising costs and wages, as well as customers spending less.
Hooters: Restaurant chain files for bankruptcy
BBC News·19d
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Hooters joins other fast-casual restaurants, such as BurgerFi and Red Lobster, which filed for bankruptcy amid rough business conditions.
Hooters files for bankruptcy | Business
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Updated: Apr 1st, 2025, 1:50 PM ET

Summary

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Hooters has filed for Chapter 11 bankruptcy protection in North Texas, facing approximately $300 million in debt. The HOA Restaurant Group aims to keep operations running while reorganizing, planning to sell some outlets to original founders who own a significant portion of U.S. locations. Despite financial challenges, including lawsuits and sponsorship losses, Hooters insists it will resolve issues within 90 to 120 days and reaffirm its commitment to the casual dining sector. The brand, founded in 1983, is navigating ongoing business strategy adaptations in response to evolving consumer preferences.

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Hooters has filed for Chapter 11 bankruptcy in Texas to restructure its debts and plans to sell all company-owned restaurants to a group of franchisees, including its founders.
The company intends to operate normally during this process, aiming for a quick exit from bankruptcy within 90-120 days, while also addressing recent operational struggles and declining customer traffic.
Hooters seeks to shift towards a purely franchised model and return to its foundational brand values, making restaurants more family-friendly.

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